If a country's income grows at the rate of 5 percent a year, it doubles in about
A) eight years.
B) six and one-half years.
C) ten years.
D) fourteen and one-half years.
E) twenty years.
Question 2 - Use the U.S. current account balance and international investment position to explain the relationship between the current account balance and the international investment position.
What will be an ideal response?
Question 3 - All of the following issues have been discussed as options for reforming the international financial architecture EXCEPT
A) how high an interest rate the lender of last resort should charge when it makes loans.
B) the length of the payback period.
C) the size of the loans.
D) if the lender of last resort (i.e., the IMF) should consult and collaborate with other international institutions such as the United Nations and the WTO.
Question 4 - Paul Krugman has stated that international trade is really about geography.
Indicate whether the statement is true or false
Question 5 - One of the main differences between the recent economic history of the high-performance Asian economies and most of the rest of the world is that growth in the Asian economies
A) increased in the 1960s.
B) continued in the 1980s.
C) slowed down in the 1960s.
D) slowed down in the 1970s.
Question 6 - Describe the political power cost of large capital flows into low-income countries.
What will be an ideal response?
Question 7 - A lender of last resort
A) makes loans when no one else will.
B) makes loans without regard for risk.
C) is a firm that is forced to make loans for its own survival.
D) makes loans to all who require them.
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